Labor Costs Continue To Rise &Nbsp; Chinese Clothing Companies Will Move Production To Philippines.

Because of the rising labor cost in China and its factors, China clothing The company is preparing to move production to Philippines. A Chinese expert takes part in "China" market During the conference, he said that the use of skilled Philippines workers could help China build. brand Image, at the same time sell Chinese clothing to global buyers.

The expert further said that this is not to say that China is considering moving production to Philippines. At the same time, China also believes that Philippines is a good place to invest. Although China needs to consider many other factors, such as labor costs and government policies, Chinese companies have enough investment potential in overseas markets.

Previously, Chinese companies had never seriously considered moving their production to Philippines, but now, because of rising labor costs and other countries producing cheap clothing such as India and Vietnam, Chinese companies are considering moving production to Philippines.

According to a Philippines expert, the labor cost in China is about 500-600 dollars per month, and it is likely to increase by about 15-20% in the next three years. In contrast, labour costs in Philippines are generally more than 300 dollars, relatively low. He further pointed out that although Vietnam's wages increased by nearly two times to $180-200, it could increase by 20% next year, while India's wages could double in the next 5-6 years.

Even though the salary structure has recently been revised, wages in Philippines are still substantial, which provides Philippines with a cost advantage.

The Philippines expert even pointed out that in addition to having a large middle level manager, quality assurance personnel and industrial engineer team, Philippines also has skilled labor force, which can help Philippines maintain the stability of garment industry production. Philippines is famous for its good quality, prompt delivery and flexibility. However, Philippines is not one of the countries with the lowest price, especially in the larger market. Therefore, after the export quota was ended in 2005, Philippines lost its market share.